Tenant Fees Bill
The Tenant Fees Bill (‘the Bill’) is due to become law on 1 June 2019. The aim of the Bill is to reduce the number of costs and charges that tenants face when renting a property.
The Bill is being introduced to ban the administration fees that have been charged by landlords or letting agents at the outset of a residential tenancy. The only fees which are to be charged to the tenant are those for replacement key charges, utilities, council tax, early termination of the tenancy or late payment of rent. Interest on late payments however will be capped at 3% above the Bank of England base rate. Any other fees incurred are the responsibility of the Landlord.
In addition, security deposits are to be capped at no more than 5 weeks, rather than 6 weeks. The exception being for properties with rent over £50,000.00 a year where the deposit will remain at 6 weeks. Only one holding deposit is permitted per property and should a Landlord not return the deposit, the tenant must be informed in writing as to the reasons for retaining it.
There is however a permitted payment being introduced for payment of damages which may assist Landlords where the tenant has breached their tenancy agreement or any agreement with the letting agent.
The penalties imposed on Landlords are quite high if they are found to be charging prohibited payments to tenants. For any first offence, a £5,000.00 fine will be charged and if any further breaches are found, the penalty could be as much as £30,000.00.
If you would like any further assistance with knowing your rights as a Landlord or a Tenant or are having any problems please email Nicole Kalli at nk@cbglaw.co.uk or call 0207 462 6960.